Analysis of EPFO notification dated 29/12/2022

ü EPFO vide circular dated 29/12/2022 has referred to only Para 44(ix) read with Para 44(v) & (vi).  

o   Para-44(v): “Employees retired before 01/09/2014 without exercising the option.

o   Para-44(vi): Employees retired before 01/09/2014 and exercised the option.

ü As per para 44(ix), there is an ultimatum of eight weeks to EPFO which ends by 03/01/2023. Hence EPFO was compelled to issue the above notification.  

ü EPFO could have brought more clarity to their notification dated 29/12/2022 by stating that another notification will follow with regard to the implementation of full orders of the Hon’ble Supreme Court dated 04/11/2022. Further added more confusion  by adding a line in Para 12 of their notification” These directions are issued in compliance with the judgment dated 04/11/2022.

ü The exercising of the joint option by the employees who are retired after 01/09/2014 and also in respect of those in service is mentioned in Para 44(iv) of the order of the Hon’ble Supreme Court.

o   “The members of the scheme who did not exercise the option as it was before 01/09/2014 are entitled to exercise the option as per RC Gupta case.”

ü For the implementation of this order, the EPFO has four months time. (i.e up to 03/03/2023).

ü In view of the above EPFO is required to issue another notification detailing the procedure for submission of the joint option.

Adv. T Krishnadas Rai